Myanmar is rich in culture, traditions and natural resources.
The country is endowed with substantial arable land, an expanse of unexploited
marine life, potential extensive tracks of mineral resources (tin, tungsten,
lead, zinc, copper, silver, and gems) and commercially viable gas deposits. In
addition, the country is the world's prime supplier of natural teak (Tectona
grandis), which is one of the pillars of the country's economy and will
remain so, if managed soundly, for years to come. The revenue generated from
teak constitutes the largest portion of the forestry sector's earning. The
plentiful rivers and streamlets will be targeted for immense development of
irrigation systems, industry, and hydropower.

Export earnings by the sector was 21.63% of the total exports
in 1994/95, 19.25% in 1995/96, 18.32% in 1996/97, and 13.91% in 1997/98. The
sector failed to sustain the 1994/95-export level earning due to scaling down of
the annual allowable cut of teak from 609.000 m3 to 409,060 m3 to ensure its
sustainable production. However, production of non-teak hardwoods has been
gradually increased.

Myanmar still remains highly reliant on agriculture. In its
economic policies, agriculture constitutes the pillar and base for the
development in other sectors. Expansion of agriculture and irrigation has had
direct and strong effects on the forestry sector. Timber concessions were
stopped by the end of 1993. To promote the market economy, the Government formed
the Privatisation Commission on 9 January 1995, to oversee and ensure the
successful implementation of the privatisation process.

In line with reorienting the policy toward an appropriate
market-oriented economy system, the Government adopted the following four
objectives:

· Development of
agriculture as the base and all-round development of other sectors of the
economy;

· Proper evolution of the
market-oriented economic system;

· Development of the economy,
inviting participation in terms of technical know-how and investment from
sources inside the country and abroad; and

· The initiative to shape the
national economy must be kept in the hands of the State and the nation's
people.

According to the official statistics, the total area of
plantations was 621,318 ha in 1997, of which 54% are commercial and industrial
wood species, 29% local supply plantations, while the rest are watershed
protected species. It was increased to 694,192 ha, or an increase of 72,874 ha
in two years. The annual planting programme is now fixed at around 40,500 ha per
year, of which teak plantation's comprise 8,100 ha on a 40-year rotation.
Special emphasis is being given to the greening programme in the dry zone. The
objectives are to reforest and prevent desertification and to meet the critical
fuel wood needs of the rural people. The annual planting area was around 6,900
ha in 1995-97 and increased to 14,100 ha in 1998.

Initial adoption of a market economy was announced in
September 1988. As a result, many private timber companies became involved in
timber industries. However, for teak timber, the Myanmar Timber Enterprise (MTE)
has a monopoly in its harvesting, processing, and export. Common problems for
private companies are shortages of power supply, spare parts, and diesel
oil.

The country's import of forestry products is almost nil,
except for a small quantity of paper products and some infrastructure inputs.
The export earnings were 25.479% of the national total in 1995-96, and teak and
other hardwood timber are the most important products. Therefore, forest
management is focused on the sustainable management of natural teak-bearing
forest.

The Forest Department is the main arm of the Government for
forestry sector policy and programme implementation. Lately, the Forestry
Department has been re-structured with the addition of five new directorates,
i.e. the Watershed Conservation and Management Directorate, the Extension
Directorate, the Inspection Directorate, the Directorate of Training and
Research Development, and the Directorate of Zoological Gardens. In June 1997,
the Dry Zone Greening Department was newly created to speed up greening and
environmental restoration activities in the dry zone.

Land use, policy and planning

In 1999, The Forest Department conducted a forest resources
assessment using a remote sensing and geographical information system. It
revealed that the forest cover was 52.3%. The area under closed forests had
decreased from 43.34% in 1989 to 37.4% in 1999.

Improved access to the forest areas as a result of development
schemes makes the control of trafficking of high-valued timber and forest
products more difficult. External factors such as population growth, increased
need for food, shifting cultivation, illegal cutting and development activities
constitute the main causes of forest degradation and depletion.

The status of the Permanent Forest Estate in 1999 is shown in
Table 1. According to the Forest Policy, 1995, it is mandated to increase the
area of Reserved Forests and Protected Public Forests up to 30% and the area
under the Protected Area System up to 5% of the total area, scheduled to be
achieved by the year 2010.

In 1996, the Forest Department launched a special operation to
update and reformulate the old Working Plans in line with the modern sustainable
forest management (SFM) concept. The new district forest management plans place
the emphasis on all forest products and services, including non-wood forest
products, biodiversity conservation and the socio-economic well-being of the
local people. The plans are based on the district level. The designation of 62
districts throughout the country has been completed.

The preliminary work of launching the National Forestry Action
Programme (NFAP) started in mid-March 1995, by formulating an Issues Paper as
the basis for the NFAP exercise. A proposal to designate the Ministry of
Forestry as the National Lead Institution and for the establishment of the
Steering Committee was approved by the Cabinet.

The final issues paper was adopted by the government in
September 1995. The main aim was to explore possible funding support of the
remaining NFAP process. However, no response has been received to date. In
October 1995, the Forest Policy was promulgated in which the conservation
aspects of forest resources and biodiversity are highlighted. It is stipulated
that the area of reserved forests has to be increased to 30% from the present
status of 14.8%, and the Protected Area System (PAS) to 5% from 1.72% in order
to permanently dedicate enough land to forestry. Two important laws were
promulgated, i.e. the Forest Law in 1992 and the Protection of Wildlife, Wild
Plants and Natural Areas Law in 1994.

At the beginning of 1998, a Co-ordination and Monitoring
Committee was formed to facilitate the National Forest Programme (NFP)
exercise. The NFP was titled National Forest Master Plan and it was
composed of 19 chapters. At present, the drafts of all chapters are completed
and the NFP document will be finalised soon.

The Dry Zone Greening Department was established in 1997 to
undertake environmental conservation and greening activities in the central dry
zone of Myanmar. The integrated plan for the period 2001/02 to 2030/31 has been
prepared.

Legislation on Forestry and Wildlife Conservation has turned
away from the old concept of protecting only animals. It has now adopted a
holistic approach by conserving habitats, which is pivotal to the conservation
of wildlife. The new Forest Law emphasises the importance of people's awareness
and participation in the conservation and sustainable utilisation of forest
resources, as well as the collection and updating of the resource information,
planning, continuous monitoring of all forest operations, and of ecological
balance and environmental stability.

NGOs such as Farmer's and Women's Income Generation Groups
(FIGG) are being formed. This initiative aims at raising off-farm incomes and
helping sustainable forest management with positive effects on the social
well-being.

In order to promote and facilitate community participation in
managing the forests, the Community Forestry Instructions were
issued in late 1995, focusing on the management of forests by rural communities
through the protection of natural vegetation, establishment of forest nurseries,
and forest plantations so as to enable them to fulfil their own basic needs for
fuel wood and small timber. It also focuses on the flow of benefits to the
communities participating in forest management activities.

Professional forestry education formerly under the
responsibility of the Ministry of Education has been transferred to the Forestry
Institute, under the Ministry of Forestry. Sub-professional level training is
given at the Myanmar Naing-Ngan Forest School in Pyin-Oo-Lwin, while in-service
training, (refresher courses, training on basic principles, awareness in forest
protection and agroforestry for rural communities, etc.), are conducted at the
Central Forestry Development Training Centre.

Criteria and indicators for SFM (C&I for
SFM)

The development of C&I for SFM at national and forest
management unit (FMU) levels was completed in October 1999. The C&I for SFM
contains 7 criteria at both national and FMU levels, 78 indicators and 257
required activities at the national level, and 73 indicators and 217 activities
at the FMU level.

At present, the Forest Department will test the C&I in the
field. Revision and improvements of the C&I will be made afterwards as
appropriate. In addition, the Forest Department has been undertaking an
assessment of the application of the C&I in a FMU.

Model forest

Myanmar has established two model forests, namely Oktwin and
Pauk Khaung Model Forests in Bago Yoma Region. Natural teak forests grow
extensively in this Region. Japan International Forestry Promotion and
Co-operation Centre (JIFPRO) and JOFCA, both NGOs, have been co-operating with
the Forestry Department in managing these model forests.

Myanmar is a member of the Regional Project entitled
Implementation of the Model Forest Approach for SFM in the Asia-Pacific
Region. The Philippines, China, and Thailand are also members of this Regional
Project.

Timber certification

The Timber Certification Committee (TCC) was formed in August
1998. A preliminary check list for forest management certification was
formulated in late 1999. Two workshops on C&I and timber certification were
organised by the Forestry Department and JOFCA in 1999 and 2000.

The TCC started to establish links with other timber
certification bodies on a bilateral basis in mid 1998. The TCC seeks assistance
and co-operation from the National Timber Certification Council (MTCC) of
Malaysia and the Ecolabelling Institute (LEI) of Indonesia.

Forest harvesting and utilisation

The Forestry Department regulates the annual allowable cuts
(AACs) for teak and other hardwoods. To update the AACs, the Forestry Department
conducts a national forest inventory every year. The total AAC for the year 2000
is presented in Table 2.

Table 2: AAC for teak and other hardwoods in 2000

Species

No. of trees

m3

teak

124,213

409,062

OH

1,795,424

3,236,071

Note: OH= other hardwoods

Elephant skidding is extensively used in forestry operations.
The country has about 6,000 domestic elephants and about 5,000 in the wild. In
some areas, where the slope of the terrain is low, water buffaloes are also used
for skidding. The Myanmar Timber Enterprise (MTE) has been using about 600
buffaloes for skidding under contract.

The obvious benefits of using animals for skidding are the low
impacts on the soil surface. The Myanmar Selective System will remain as the
prime management system with animal logging being practised.

There are 96 state-owned sawmills, of which 8 are for export
products. The private sector owns 459 sawmills of small to medium capacity and
1,224 re-cutting mills. There are 6 plywood factories, 4 managed by MTE, one
under a joint venture between MTE, Daewoo and Sam Won, and a private company
owns one factory.Table 3: Production and export of teak and other
hardwoods

Fiscal year

Production (Hoppus ton)

Export of logs (Hoppus ton)

Teak

Other hard woods

Teak

Other hard woods

1995/96

230,093

623,054

97,312

75,872

1996/97

203,124

732,331

118,549

108,577

1997/98

238,085

818,938

123,070

228,836

The local people and the private sector have carried out
harvesting of non-wood forest products (NWFPs), following the regulations and
procedures prescribed by the Forest Department. Among the important NWFPs are
bamboo, cane, cutch, bark, plant fibre, nipa palm, and honey.

Five-year plan

Currently, the country is in the second year of its Five Year
Short-term Plan (1996/97 - 2000/01). This Five Year Plan is a follow-up to the
earlier Short-term Four Year Plan (1992/92 - 1995/96). The priorities of the
current short-term plan are: a) agriculture, b) livestock and fishery, c)
production of crude oil, national gas, gems and jades, d) transportation and
energy, e) value added and agro-based industries, and f) export of goods and
services.

The salient features of the plan for the forestry sector can
construed as to:

· systematically
extend and conserve reserved forest areas;

· decrease teak production from
2.6 to 2.5 lakh cu.ton;

· increase hardwood production
from 11.1 to 14.4 lakh cu.ton;

· increase charcoal production
from 2.8 to 3.6 lakh cu.ton;

· increase bamboo production
from 953.4 to 1087.6 million pieces;

· increase the total value of
forest products exports from 1,131 million kyats in 1995-96 to 1,344 million
kyats by 2000-01;

· place emphasis on wood lots
plantation and conservation of mangroves and watersheds;

· explore fuel wood resources
alternatives;

· promote forest-based
eco-tourism; and

· promote and support the
production of value-added products.

Institutional

In regard to forestry research, the Myanmar Academy for
Agriculture, Forestry, Livestock and Fishery organised a research conference in
April 2000, in which 12 forestry research papers were presented. The main
problems facing forestry research at the Forestry Research Institute are as
follows:

· There have been a
large number of disconnected projects; thus a programme approach needs to be
initiated.

· The lack of qualified
researchers; thus training abroad needs to be intensified.

· Inadequate financial
resources.

The issuance of Community Forestry Instructions in 1995 was a
major break through in the history of Myanmar forestry. It aims at
decentralisation in forest management, addressing the basic needs of the local
people through participatory approach and environmental conservation.

A forestry extension division was established within the
Forestry Department in 1995. A Forest Bulletin has been published
every two months since 1998. The public media, such as radio, television, and
exhibition have also been used for extension purposes.

There are four state-education and training institutions for
forestry in the country as follows:

· Institute of
Forestry at Yesin;

· Myanmar Forest Scholl at Pyin
Oo Lwin;

· Central Forestry Development
Training Centre at Hmawbi; and

· MTE training schools 1,2, and
3.

Collaboration with partners

In the field of forestry, the Myanmar Government is the member
of the following on-going regional programmes/projects:

· GCP/RAS/177/JPN: Regional
Project on Assistance for the Implementation of the Model Forest Approach for
Sustainable Forest Management in the Asia-Pacific Region;

· GCP/RAS/163/NET: Forestry
Research Support Programme for Asia and Pacific (FORSPA); and

· GCP/RAS/173/EC: Information
and Analysis for Sustainable Forest Management: Linking National and
International Efforts in South Asia and South East Asia.

The Forest Department also gets assistance from UNDP
and FAO in the form of Human Development Initiatives Projects. Moreover, the
Myanmar Government was a member of two recently-completed regional projects. The
salient important results of support from these two projects on forestry
development in Myanmar were as follows:

· GCP/RAS/142/JPN:
Strengthening Re-afforestation Programmes in Asia (STRAP) A national workshop
was held in November-December 1995. Four zonal working groups on mangrove, teak,
hilly, and dry zones were formed to deliberate and make recommendations on
policy, problems and constraints, people's participation, technical matters, and
suggested problem resolution on re-afforestation programmes.

· GCP/RAS/137/JPN: Forestry
Planning and Policy Assistance in Asia and the Pacific Region. This project
assisted the Government in the formulation of a National Forest Policy,
1995.

As a follow up to the recommendation made at the 17th APFC
meeting held in Yogyakarta, Indonesia, February 1998, the Government crafted the
National Code of Forest Harvesting Practices. FAO provided assistance to
facilitate the formulation of the Code. The document was printed in early
2000.

Myanmar is the Headquarters of the Asia-Pacific Regional
TEAKNET. FAO Regional Projects were instrumental in the formation of the
TEAKNET. The objective of the TEAKNET is to strengthen interaction among all
those concerned with the conservation and sustainable management of teak-bearing
forests and plantations through sharing of information and promoting
collaborative efforts to deal with common problems. The aims of TEAKNET are
to:

· facilitate the
exchange of technology and information on tree improvement, silviculture,
management, harvesting, processing, and trade of teak;

· assist in the exchange of
genetic material and plant, wood samples, and to standardise trials and methods;
and

· promote collaborative studies
on critical areas that are of common interest to member countries or
institutes.

The Second TEAKNET Steering Committee Meeting was held in
Chiang Mai, Thailand, 14-15 December 1997. The need for information about teak
was emphasised by the members from the private sector. The meeting discussed
issues on co-ordination with other teak related groups e.g. Teak 2000, APAFRI,
etc. The venue of the Third Regional Seminar on Teak will be held in
Indonesia.

With regard to human resource development, Myanmar has had the
opportunity to participate in several seminars, workshops, training, and study
tours.

Following the establishment of the Community Forestry
Institutions, about 15,000 ha community-owned forest plantations had been
established throughout the country by 1999. A nation wide tree-planting
programme is implemented annually; school children, local communities, and NGOs
take part in this programme; and about 15 million tree seedlings are planted
every year.

The Forestry Department and UNDP/FAO are implementing three
projects as follows: